In 360 feedback system a questionnaire is formulated according to the desirable areas which need to be evaluated and this questionnaire is distributed among the managers, peers and juniors of that employee. The information or data collected through this system can prove useful when deciding if a particular employee should be given a promotion or more training. A prime factor which makes this system so effective is that there is very less scope for biasness and that is why it is more reliable.

Another factor related to this type of feedback system is of greater acceptance. An employee is more likely to accept the opinions of his subordinates and people with whom he deals on regular basis, rather than the views of a specific senior.

The 360 feedback system can help an employee to find out his strengths and the areas in which he lacks. It is a great opportunity for an employee to acknowledge his shortcomings and then improve his weak points. As the opinions expressed by the people who participate in this process are kept confidential, it allows them to share their views and suggestions more openly and honestly. Thus this feedback system can prove to be highly beneficial for a company that is seeking ways to improve the performance, attitude and behavior of its employees, with constructive feedback.